SENATE BILL 22-118
BY SENATOR(S) Woodward and Hinrichsen, Hisey, Lundeen, Priola,
Rankin, Scott, Sonnenberg, Buckner, Cooke, Coram, Kolker, Lee, Moreno,
Pettersen, Smallwood, Story, Fenberg;
also REPRESENTATIVE(S) Holtorf and Valdez D., Lynch, McKean,
Pelton, Pico, Rich, Van Beber, Van Winkle, Will, Amabile, Bernett, Bird,
Boesenecker, Carver, Exum, Kipp, Lindsay, McCormick, McLachlan,
Ricks, Roberts, Soper, Titone, Valdez A., Young.
C
ONCERNING THE ENCOURAGEMENT OF THE USE OF GEOTHERMAL ENERGY
BY PROVIDING SIMILAR TREATMENT TO SOLAR ENERGY
, AND, IN
CONNECTION THEREWITH
, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-38.5-102, add (1)(v)
and (4) as follows:
24-38.5-102. Colorado energy office - duties and powers -
definitions. (1) The Colorado energy office shall:
(v) I
N CONSULTATION WITH THE APPROPRIATE INDUSTRIES , DEVELOP
BASIC CONSUMER EDUCATION OR GUIDANCE ABOUT PURCHASED OR
, IF
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. AVAILABLE, LEASED INSTALLATION OF A SYSTEM THAT USES GEOTHERMAL
ENERGY FOR WATER HEATING OR SPACE HEATING OR COOLING IN A SINGLE
BUILDING OR FOR SPACE HEATING FOR MORE THAN ONE BUILDING THROUGH
A PIPELINE NETWORK
.
(4) T
HE COLORADO ENERGY OFFICE MAY UPDATE THE GREENHOUSE
GAS POLLUTION REDUCTION ROADMAP
, PUBLISHED BY THE OFFICE AND
DATED
JANUARY 14, 2021, OR AS AMENDED THEREAFTER , TO EXPRESSLY
INCLUDE GEOTHERMAL ENERGY AS A RENEWABLE ENERGY RESOURCE THAT
QUALIFYING RETAIL UTILITIES MAY USE TO ACHIEVE THE ELECTRIC UTILITY
SECTOR GREENHOUSE GAS POLLUTION REDUCTION GOALS SET FORTH IN THE
GREENHOUSE GAS POLLUTION REDUCTION ROADMAP
.
SECTION 2. In Colorado Revised Statutes, 24-48.5-113, amend
(1)(a) introductory portion and (1)(e) as follows:
24-48.5-113. Limit on fees - active solar energy systems -
geothermal systems - definitions - repeal. (1) (a) Except as otherwise
provided in this section, the aggregate of all charges or other related or
associated fees the state or any agency, institution, authority, or political
subdivision of the state may impose or assess to install an active solar
energy system
OR A GEOTHERMAL ENERGY SYSTEM shall not exceed:
(e) As used in this subsection (1):
(I) "Active solar energy system" means a single system that contains
electric generation, a thermal device, or is an energy storage system as
defined in section 40-2-202 (2).
(II) "G
EOTHERMAL ENERGY SYSTEM " MEANS A SYSTEM THAT USES
GEOTHERMAL ENERGY FOR WATER HEATING OR SPACE HEATING OR COOLING
IN A SINGLE BUILDING
, FOR SPACE HEATING FOR MORE THAN ONE BUILDING
THROUGH A PIPELINE NETWORK
, OR FOR ELECTRICITY GENERATION.
SECTION 3. In Colorado Revised Statutes, 25-6.5-201, amend (2)
as follows:
25-6.5-201. Definitions. As used in this part 2, unless the context
otherwise requires:
PAGE 2-SENATE BILL 22-118 (2) "Pollution control equipment" means any personal property,
including, but not limited to, equipment, machinery, devices, systems,
buildings, or structures, that is installed, constructed, or used in or as a part
of a facility that creates a product in a manner that generates less pollution
by the utilization of an alternative manufacturing or generating technology.
"Pollution control equipment" includes, but is not limited to, gas or wind
turbines and associated compressors or equipment; or
solar, thermal, or
photovoltaic equipment;
OR EQUIPMENT USED AS PART OF A SYSTEM THAT
USES GEOTHERMAL ENERGY FOR WATER HEATING OR SPACE HEATING OR
COOLING IN A SINGLE BUILDING
, FOR SPACE HEATING FOR MORE THAN ONE
BUILDING THROUGH A PIPELINE NETWORK
, OR FOR ELECTRICITY
GENERATION
.
SECTION 4. In Colorado Revised Statutes, 29-3-103, amend the
introductory portion and (10)(m) as follows:
29-3-103. Definitions. As used in this article
ARTICLE 3, unless the
context otherwise requires:
(10) "Project" means any land, building, or other improvement and
all real or personal properties, and any undivided or other interest in any of
the foregoing, except inventories and raw materials, whether or not in
existence, suitable or used for or in connection with any of the following:
(m) Capital improvements to existing single-family residential,
multi-family residential, commercial, or industrial structures, to retrofit such
structures for significant energy savings or installation of solar or other
alternative electrical energy-producing improvements to serve that structure
or other structures on contiguous property under common ownership
OR
INSTALLATION OF A SYSTEM THAT USES GEOTHERMAL ENERGY FOR WATER
HEATING OR SPACE HEATING OR COOLING IN A SINGLE STRUCTURE
.
SECTION 5. In Colorado Revised Statutes, 30-28-106, amend
(3)(a)(VI) as follows:
30-28-106. Adoption of master plan - contents. (3) (a) The master
plan of a county or region, with the accompanying maps, plats, charts, and
descriptive and explanatory matter, must show the county or regional
planning commission's recommendations for the development of the
territory covered by the plan. The master plan of a county or region is an
PAGE 3-SENATE BILL 22-118 advisory document to guide land development decisions; however, the plan
or any part thereof may be made binding by inclusion in the county's or
region's adopted subdivision, zoning, platting, planned unit development,
or other similar land development regulations after satisfying notice, due
process, and hearing requirements for legislative or quasi-judicial processes
as appropriate. After consideration of each of the following, where
applicable or appropriate, the master plan may include:
(VI) Methods for assuring access to appropriate conditions for solar,
wind, or other alternative energy sources,
INCLUDING GEOTHERMAL ENERGY
USED FOR WATER HEATING OR SPACE HEATING OR COOLING IN A SINGLE
BUILDING
, FOR SPACE HEATING FOR MORE THAN ONE BUILDING THROUGH A
PIPELINE NETWORK
, OR FOR ELECTRICITY GENERATION.
SECTION 6. In Colorado Revised Statutes, 30-28-113, amend
(1)(b)(II)(A) and (1)(b)(II)(C) as follows:
30-28-113. Regulation of size and use - districts - definitions -
repeal. (1) (b) (II) (A) Except as otherwise provided in this section, the
aggregate of all charges or other related or associated fees a county shall
impose or assess to install an active solar energy system
OR GEOTHERMAL
ENERGY SYSTEM
, shall not exceed the lesser of the county's actual costs in
issuing the permit or five hundred dollars for a residential application or one
thousand dollars for a nonresidential application if the device or system
produces fewer than two megawatts of direct current electricity or an
equivalent-sized thermal energy system, or that exceed the county's actual
costs in issuing the permit if the device or system produces at least two
megawatts of direct current electricity or an equivalent-sized thermal energy
system. A county may increase its fees or other charges as authorized by
this subsection (1)(b)(II) by no more than five percent on an annual basis
until the five hundred dollar limitation specified in this subsection (1)(b)(II)
is achieved. The county shall clearly and individually identify all fees and
taxes assessed on an application subject to this subsection (1)(b)(II) on the
invoice. The general assembly hereby finds that there is a statewide need for
certainty regarding the fees that can be assessed for permitting such devices
or systems, and therefore declares that this subsection (1)(b)(II) is a matter
of statewide concern. This subsection (1)(b)(II) is repealed, effective
December 31, 2029.
(C) As used in this subsection (1)(b)(II), "active solar energy
PAGE 4-SENATE BILL 22-118 system" means a single system that contains electric generation, a thermal
device, or is an energy storage system as defined in section 40-2-202 (2),
AND "GEOTHERMAL ENERGY SYSTEM " MEANS A SYSTEM THAT USES
GEOTHERMAL ENERGY FOR WATER HEATING OR SPACE HEATING OR COOLING
IN A SINGLE BUILDING
, FOR SPACE HEATING FOR MORE THAN ONE BUILDING
THROUGH A PIPELINE NETWORK
, OR FOR ELECTRICITY GENERATION.
SECTION 7. In Colorado Revised Statutes, 30-28-120, amend (1)
as follows:
30-28-120. Existing structures - county property. (1) The lawful
use of a building or structure or the lawful use of any land, as existing and
lawful at the time of the adoption of a zoning resolution or, in the case of
an amendment of a resolution, at the time of such amendment, may be
continued, although such use does not conform with the provisions of such
resolution or amendment, and such use may be extended throughout the
same building if no structural alteration of such building is proposed or
made for the purpose of such extension. The addition of a solar energy
device
OR A DEVICE USED AS PART OF A SYSTEM THAT USES GEOTHERMAL
ENERGY FOR WATER HEATING OR SPACE HEATING OR COOLING
to such
building shall not necessarily be considered a structural alteration. The
board of county commissioners may provide in any zoning resolution for
the restoration, reconstruction, extension, or substitution of nonconforming
uses upon such terms and conditions as may be set forth in the zoning
resolution.
SECTION 8. In Colorado Revised Statutes, 31-15-602, amend
(4)(b)(I)(A) and (4)(b)(I)(C) as follows:
31-15-602. Energy efficient building codes - legislative
declaration - definitions - repeal. (4) (b) (I) (A) Except as otherwise
provided in this section, the aggregate of all charges or other related or
associated fees a municipality shall impose or assess to install an active
solar electric or solar thermal device or system
OR A GEOTHERMAL ENERGY
SYSTEM
shall not exceed the lesser of the municipality's actual costs in
issuing the permit or five hundred dollars for a residential application or one
thousand dollars for a nonresidential application if the device or system
produces fewer than two megawatts of direct current electricity or an
equivalent-sized thermal energy system, or that exceed the municipality's
actual costs in issuing the permit if the device or system produces at least
PAGE 5-SENATE BILL 22-118 two megawatts of direct current electricity or an equivalent-sized thermal
energy system. A municipality may increase its fees or other charges as
authorized by this subsection (4)(b)(I) by no more than five percent on an
annual basis until the five hundred dollar limitation specified in this
subsection (4)(b)(I) is achieved. The municipality shall clearly and
individually identify all fees and taxes assessed on an application subject to
this subsection (4)(b)(I) on the invoice. The general assembly hereby finds
that there is a statewide need for certainty regarding the fees that can be
assessed for permitting such devices or systems, and therefore declares that
this subsection (4)(b) is a matter of statewide concern.
(C) As used in this subsection (4)(b)(I), "active solar energy system"
means a single system that contains electric generation, a thermal device,
or is an energy storage system as defined in section 40-2-202 (2),
AND
"GEOTHERMAL ENERGY SYSTEM " MEANS A SYSTEM THAT USES GEOTHERMAL
ENERGY FOR WATER HEATING OR SPACE HEATING OR COOLING IN A SINGLE
BUILDING
, FOR SPACE HEATING FOR MORE THAN ONE BUILDING THROUGH A
PIPELINE NETWORK
, OR FOR ELECTRICITY GENERATION.
SECTION 9. In Colorado Revised Statutes, 31-23-206, amend
(1)(f) as follows:
31-23-206. Master plan. (1) It is the duty of the commission to
make and adopt a master plan for the physical development of the
municipality, including any areas outside its boundaries, subject to the
approval of the governmental body having jurisdiction thereof, that in the
commission's judgment bear relation to the planning of the municipality.
The master plan of a municipality is an advisory document to guide land
development decisions; however, the plan or any part thereof may be made
binding by inclusion in the municipality's adopted subdivision, zoning,
platting, planned unit development, or other similar land development
regulations after satisfying notice, due process, and hearing requirements
for legislative or quasi-judicial processes as appropriate. When a
commission decides to adopt a master plan, the commission shall conduct
public hearings, after notice of such public hearings has been published in
a newspaper of general circulation in the municipality in a manner sufficient
to notify the public of the time, place, and nature of the public hearing, prior
to final adoption of a master plan in order to encourage public participation
in and awareness of the development of such plan and shall accept and
consider oral and written public comments throughout the process of
PAGE 6-SENATE BILL 22-118 developing the plan. The plan, with the accompanying maps, plats, charts,
and descriptive matter, must, after consideration of each of the following,
where applicable or appropriate, show the commission's recommendations
for the development of the municipality and outlying areas, including:
(f) A zoning plan for the control of the height, area, bulk, location,
and use of buildings and premises. Such a zoning plan may protect and
assure access to appropriate conditions for solar, wind, or other alternative
energy sources,
INCLUDING GEOTHERMAL ENERGY USED FOR WATER
HEATING OR SPACE HEATING OR COOLING IN A SINGLE BUILDING
, FOR SPACE
HEATING FOR MORE THAN ONE BUILDING THROUGH A PIPELINE NETWORK
, OR
FOR ELECTRICITY GENERATION
; however, regulations and restrictions of the
height, number of stories, size of buildings and other structures, and the
height and location of trees and other vegetation shall not apply to existing
buildings, structures, trees, or vegetation except for new growth on such
vegetation.
SECTION 10. In Colorado Revised Statutes, 38-30-168, amend
(1)(b) as follows:
38-30-168. Unreasonable restrictions on renewable energy
generation devices - definitions. (1) (b) As used in this section,
"renewable energy generation device" means: either:
(I) A solar energy device, as defined in section 38-32.5-100.3; or
(II) A wind-electric generator that meets the interconnection
standards established in rules promulgated by the public utilities
commission pursuant to section 40-2-124; C.R.S.
OR
(III) A GEOTHERMAL ENERGY DEVICE .
SECTION 11. In Colorado Revised Statutes, add 40-2-127.5 as
follows:
40-2-127.5. Community energy funds - community geothermal
gardens - rules - legislative declaration - definitions - repeal.
(1) Legislative declaration. T
HE GENERAL ASSEMBLY HEREBY FINDS AND
DECLARES THAT
:
PAGE 7-SENATE BILL 22-118 (a) LOCAL COMMUNITIES CAN BENEFIT FROM THE FURTHER
DEVELOPMENT OF RENEWABLE ENERGY
, ENERGY EFFICIENCY ,
CONSERVATION, AND ENVIRONMENTAL IMPROVEMENT PROJECTS , AND THE
GENERAL ASSEMBLY HEREBY ENCOURAGES ELECTRIC UTILITIES TO
ESTABLISH COMMUNITY ENERGY FUNDS FOR THE DEVELOPMENT OF SUCH
PROJECTS
;
(b) I
T IS IN THE PUBLIC INTEREST THAT BROADER PARTICIPATION IN
GEOTHERMAL ELECTRIC GENERATION BY
COLORADO RESIDENTS AND
COMMERCIAL ENTITIES BE ENCOURAGED BY THE DEVELOPMENT AND
DEPLOYMENT OF DISTRIBUTED GEOTHERMAL ELECTRIC GENERATING
FACILITIES KNOWN AS COMMUNITY GEOTHERMAL GARDENS
, IN ORDER TO:
(I) P
ROVIDE COLORADO RESIDENTS AND COMMERCIAL ENTITIES WITH
THE OPPORTUNITY TO PARTICIPATE IN GEOTHERMAL ELECTRICITY
GENERATION
;
(II) A
LLOW RENTERS, LOW-INCOME UTILITY CUSTOMERS , AND
AGRICULTURAL PRODUCERS TO OWN INTERESTS IN SUCH GEOTHERMAL
GENERATION FACILITIES
;
(III) A
LLOW INTERESTS IN SUCH GEOTHERMAL GENERATION
FACILITIES TO BE PORTABLE AND TRANSFERRABLE
; AND
(IV) LEVERAGE COLORADO'S GEOTHERMAL ELECTRICITY
GENERATING CAPACITY THROUGH ECONOMIES OF SCALE
.
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT
OTHERWISE REQUIRES
, THE DEFINITIONS IN SECTION 40-2-124 APPLY, AND:
(a) (I) "C
OMMUNITY GEOTHERMAL GARDEN " MEANS A GEOTHERMAL
FACILITY THAT PRODUCES ELECTRICITY FROM THE EARTH
'S HEAT WITH A
NAMEPLATE RATING WITHIN THE RANGE SPECIFIED UNDER SUBSECTION
(2)(b)(IV) OF THIS SECTION THAT IS LOCATED IN OR NEAR A COMMUNITY
SERVED BY A QUALIFYING RETAIL UTILITY WHERE THE BENEFICIAL USE OF
THE ELECTRICITY GENERATED BY THE FACILITY BELONGS TO THE
SUBSCRIBERS TO THE COMMUNITY GEOTHERMAL GARDEN
. THERE MUST BE
AT LEAST TEN SUBSCRIBERS
. THE OWNER OF THE COMMUNITY GEOTHERMAL
GARDEN MAY BE THE QUALIFYING RETAIL UTILITY OR ANY OTHER
FOR
-PROFIT OR NONPROFIT ENTITY OR ORGANIZATION , INCLUDING A
PAGE 8-SENATE BILL 22-118 SUBSCRIBER ORGANIZATION ORGANIZED UNDER THIS SECTION , THAT
CONTRACTS TO SELL THE OUTPUT FROM THE COMMUNITY GEOTHERMAL
GARDEN TO THE QUALIFYING RETAIL UTILITY
. A COMMUNITY GEOTHERMAL
GARDEN IS DEEMED TO BE
"LOCATED ON THE SITE OF CUSTOMER FACILITIES".
(II) A
COMMUNITY GEOTHERMAL GARDEN CONSTITUTES "RETAIL
DISTRIBUTED GENERATION
" WITHIN THE MEANING OF SECTION 40-2-124.
(III) N
OTWITHSTANDING ANY PROVISION OF THIS SECTION OR
SECTION
40-2-124 TO THE CONTRARY, A COMMUNITY GEOTHERMAL GARDEN
CONSTITUTES RETAIL DISTRIBUTED GENERATION FOR PURPOSES OF A
COOPERATIVE ELECTRIC ASSOCIATION
'S COMPLIANCE WITH THE APPLICABLE
RENEWABLE ENERGY STANDARD UNDER SECTION
40-2-124.
(IV) A
COMMUNITY GEOTHERMAL GARDEN MUST HAVE A
NAMEPLATE RATING OF FIVE MEGAWATTS OR LESS
; EXCEPT THAT THE
COMMISSION MAY
, IN RULES ADOPTED PURSUANT TO SUBSECTION (3)(b) OF
THIS SECTION
, APPROVE THE FORMATION OF A COMMUNITY GEOTHERMAL
GARDEN WITH A NAMEPLATE RATING OF UP TO TEN MEGAWATTS
.
(b) "S
UBSCRIBER" MEANS A RETAIL CUSTOMER OF A QUALIFYING
RETAIL UTILITY WHO OWNS A SUBSCRIPTION AND WHO HAS IDENTIFIED ONE
OR MORE PHYSICAL LOCATIONS TO WHICH THE SUBSCRIPTION IS ATTRIBUTED
.
S
UCH PHYSICAL LOCATIONS MUST BE WITHIN THE SERVICE TERRITORY OF
THE SAME QUALIFYING RETAIL UTILITY AS THE COMMUNITY GEOTHERMAL
GARDEN
. THE SUBSCRIBER MAY CHANGE FROM TIME TO TIME THE PREMISES
TO WHICH THE COMMUNITY GEOTHERMAL GARDEN ELECTRICITY
GENERATION IS ATTRIBUTED
, SO LONG AS THE PREMISES ARE WITHIN THE
SAME SERVICE TERRITORY
.
(c) "S
UBSCRIPTION" MEANS A PROPORTIONAL INTEREST IN
GEOTHERMAL ELECTRIC GENERATION FACILITIES INSTALLED AT A
COMMUNITY GEOTHERMAL GARDEN
, TOGETHER WITH THE RENEWABLE
ENERGY CREDITS ASSOCIATED WITH OR ATTRIBUTABLE TO SUCH FACILITIES
UNDER SECTION
40-2-124. EACH SUBSCRIPTION MUST BE SIZED TO
REPRESENT AT LEAST ONE KILOWATT OF THE COMMUNITY GEOTHERMAL
GARDEN
'S GENERATING CAPACITY AND TO SUPPLY NO MORE THAN ONE
HUNDRED TWENTY PERCENT OF THE AVERAGE ANNUAL CONSUMPTION OF
ELECTRICITY BY EACH SUBSCRIBER AT THE PREMISES TO WHICH THE
SUBSCRIPTION IS ATTRIBUTED
, WITH A DEDUCTION FOR THE AMOUNT OF ANY
PAGE 9-SENATE BILL 22-118 EXISTING GEOTHERMAL FACILITIES AT SUCH PREMISES . SUBSCRIPTIONS IN A
COMMUNITY GEOTHERMAL GARDEN MAY BE TRANSFERRED OR ASSIGNED TO
A SUBSCRIBER ORGANIZATION OR TO ANY PERSON OR ENTITY WHO QUALIFIES
TO BE A SUBSCRIBER UNDER THIS SECTION
.
(3) Subscriber organization - subscriber qualifications -
transferability of subscriptions. (a) T
HE COMMUNITY GEOTHERMAL
GARDEN MAY BE OWNED BY A SUBSCRIBER ORGANIZATION
, WHOSE SOLE
PURPOSE IS BENEFICIALLY OWNING AND OPERATING A COMMUNITY
GEOTHERMAL GARDEN
. THE SUBSCRIBER ORGANIZATION MAY BE ANY
FOR
-PROFIT OR NONPROFIT ENTITY PERMITTED BY COLORADO LAW. THE
COMMUNITY GEOTHERMAL GARDEN MAY ALSO BE BUILT
, OWNED, AND
OPERATED BY A THIRD PARTY UNDER CONTRACT WITH THE SUBSCRIBER
ORGANIZATION
.
(b) T
HE COMMISSION SHALL ADOPT RULES AS NECESSARY TO
IMPLEMENT THIS SECTION
, INCLUDING RULES TO FACILITATE THE FINANCING
OF SUBSCRIBER
-OWNED COMMUNITY GEOTHERMAL GARDENS . THE RULES
MUST INCLUDE
:
(I) M
INIMUM CAPITALIZATION;
(II) T
HE SHARE OF A COMMUNITY GEOTHERMAL GARDEN 'S
GEOTHERMAL ELECTRIC GENERATION FACILITIES THAT A SUBSCRIBER
ORGANIZATION MAY AT ANY TIME OWN IN ITS OWN NAME
; AND
(III) AUTHORIZING SUBSCRIBER ORGANIZATIONS TO ENTER INTO
LEASES
, SALE-AND-LEASEBACK TRANSACTIONS , OPERATING AGREEMENTS,
AND OTHER OWNERSHIP ARRANGEMENTS WITH THIRD PARTIES .
(c) I
F A SUBSCRIBER CEASES TO BE A CUSTOMER AT THE PREMISES ON
WHICH THE SUBSCRIPTION IS BASED BUT
, WITHIN A REASONABLE PERIOD AS
DETERMINED BY THE COMMISSION
, BECOMES A CUSTOMER AT ANOTHER
PREMISES IN THE SERVICE TERRITORY OF THE QUALIFYING RETAIL UTILITY
AND WITHIN THE GEOGRAPHIC AREA SERVED BY THE COMMUNITY
GEOTHERMAL GARDEN
, THE SUBSCRIPTION CONTINUES IN EFFECT BUT THE
BILL CREDIT AND OTHER FEATURES OF THE SUBSCRIPTION ARE ADJUSTED AS
NECESSARY TO REFLECT ANY DIFFERENCES BETWEEN THE NEW AND
PREVIOUS PREMISES
' CUSTOMER CLASSIFICATION AND AVERAGE ANNUAL
CONSUMPTION OF ELECTRICITY
.
PAGE 10-SENATE BILL 22-118 (4) Standards for construction and operation. T HE FOLLOWING
REQUIREMENTS APPLY TO ANY COMMUNITY GEOTHERMAL GARDEN
EXCEEDING TWO MEGAWATTS
:
(a) T
HE INITIAL INSTALLATION OF ANY ELECTRICAL EQUIPMENT
ASSOCIATED WITH THE COMMUNITY GEOTHERMAL GARDEN IS SUBJECT TO
FINAL INSPECTION AND APPR OVAL IN ACCOR DANCE WITH SECTION
12-115-120.
(b) F
OLLOWING THE DEVELOPMENT OR ACQUISITION BY A
QUALIFYING RETAIL UTILITY OF A COMMUNITY GEOTHERMAL GARDEN IN
WHICH THE QUALIFYING RETAIL UTILITY RETAINS OWNERSHIP
, THE
QUALIFYING RETAIL UTILITY SHALL EITHER USE ITS OWN EMPLOYEES TO
OPERATE AND MAINTAIN THE COMMUNITY GEOTHERMAL GARDEN OR
CONTRACT FOR OPERATION AND MAINTENANCE OF THE COMMUNITY
GEOTHERMAL GARDEN BY A CONTRACTOR WHOSE EMPLOYEES HAVE ACCESS
TO AN APPRENTICESHIP PROGRAM REGISTERED WITH THE
UNITED STATES
DEPARTMENT OF LABOR
'S OFFICE OF APPRENTICESHIP OR WITH A STATE
APPRENTICESHIP COUNCIL RECOGNIZED BY THAT OFFICE
; EXCEPT THAT THIS
APPRENTICESHIP REQUIREMENT DOES NOT APPLY TO
:
(I) T
HE DESIGN, PLANNING, OR ENGINEERING OF THE
INFRASTRUCTURE
;
(II) M
ANAGEMENT FUNCTIONS TO OPERATE THE INFRASTRUCTURE ;
OR
(III) ANY WORK INCLUDED IN A WARRANTY .
(5) Community geothermal gardens not subject to regulation.
N
EITHER THE OWNERS OF NOR THE SUBSCRIBERS TO A COMMUNITY
GEOTHERMAL GARDEN ARE CONSIDERED PUBLIC UTILITIES SUBJECT TO
REGULATION BY THE COMMISSION SOLELY AS A RESULT OF THEIR INTEREST
IN THE COMMUNITY GEOTHERMAL GARDEN
. PRICES PAID FOR SUBSCRIPTIONS
IN COMMUNITY GEOTHERMAL GARDENS SHALL NOT BE SUBJECT TO
REGULATION BY THE COMMISSION
.
(6) Purchases of the output from community geothermal
gardens. (a) (I) E
ACH QUALIFYING RETAIL UTILITY MAY SET FORTH IN ITS
PLAN FOR ACQUISITION OF RENEWABLE RESOURCES A PLAN TO PURCHASE
PAGE 11-SENATE BILL 22-118 THE ELECTRICITY AND RENEWABLE ENERGY CREDITS GENERATED FROM ONE
OR MORE COMMUNITY GEOTHERMAL GARDENS OVER THE PERIOD COVERED
BY THE PLAN
.
(II) F
OR EACH QUALIFYING RETAIL UTILITY 'S COMPLIANCE YEARS
COMMENCING IN
2026 AND THEREAFTER, THE COMMISSION SHALL
DETERMINE THE MINIMUM AND MAXIMUM PURCHASES OF ELECTRICAL
OUTPUT FROM NEWLY INSTALLED COMMUNITY GEOTHERMAL GARDENS OF
DIFFERENT OUTPUT CAPACITY THAT THE QUALIFYING RETAIL UTILITY MAY
PLAN TO ACQUIRE
. IN ADDITION, AS NECESSARY AND APPROPRIATE , THE
COMMISSION SHALL FORMULATE AND IMPLEMENT POLICIES CONSISTENT
WITH THIS SECTION THAT SIMULTANEOUSLY ENCOURAGE
:
(A) T
HE OWNERSHIP BY CUSTOMERS OF SUBSCRIPTIONS IN
COMMUNITY GEOTHERMAL GARDENS AND OF OTHER FORMS OF DISTRIBUTED
GENERATION
, TO THE EXTENT THE COMMISSION FINDS THERE TO BE
CUSTOMER DEMAND FOR SUCH OWNERSHIP
;
(B) O
WNERSHIP IN COMMUNITY GEOTHERMAL GARDENS BY
RESIDENTIAL RETAIL CUSTOMERS AND AGRICULTURAL PRODUCERS
,
INCLUDING LOW-INCOME CUSTOMERS, TO THE EXTENT THE COMMISSION
FINDS THERE TO BE DEMAND FOR SUCH OWNERSHIP
;
(C) T
HE DEVELOPMENT OF COMMUNITY GEOTHERMAL GARDENS
WITH ATTRIBUTES THAT THE COMMISSION FINDS RESULT IN LOWER OVERALL
TOTAL COSTS FOR THE QUALIFYING RETAIL UTILITY
'S CUSTOMERS;
(D) S
UCCESSFUL FINANCING AND OPERATION OF COMMUNITY
GEOTHERMAL GARDENS OWNED BY SUBSCRIBER ORGANIZATIONS
; AND
(E) THE ACHIEVEMENT OF THE GOALS AND OBJECTIVES OF SECTION
40-2-124.
(b) (I) (A) T
HE OUTPUT FROM A COMMUNITY GEOTHERMAL GARDEN
MUST BE SOLD ONLY TO THE QUALIFYING RETAIL UTILITY SERVING THE
GEOGRAPHIC AREA WHERE THE COMMUNITY GEOTHERMAL GARDEN IS
LOCATED
.
(B) O
NCE A COMMUNITY GEOTHERMAL GARDEN IS PART OF A
QUALIFYING RETAIL UTILITY
'S PLAN FOR ACQUISITION OF RENEWABLE
PAGE 12-SENATE BILL 22-118 RESOURCES, AS APPROVED BY THE COMMISSION , THE COMMISSION SHALL
INITIATE A PROCEEDING
, OR CONSIDER IN AN ACTIVE PROCEEDING , TO
DETERMINE WHETHER THE QUALIFYING RETAIL UTILITY MUST PURCHASE ALL
OF THE ELECTRICITY AND RENEWABLE ENERGY CREDITS GENERATED BY THE
COMMUNITY GEOTHERMAL GARDEN OR WHETHER A SUBSCRIBER MAY
, UPON
BECOMING A SUBSCRIBER
, CHOOSE TO RETAIN OR SELL TO THE QUALIFYING
RETAIL UTILITY THE SUBSCRIBER
'S RENEWABLE ENERGY CREDITS .
(C) T
HE AMOUNT OF ELECTRICITY AND RENEWABLE ENERGY CREDITS
GENERATED BY EACH COMMUNITY GEOTHERMAL GARDEN IS DETERMINED BY
A PRODUCTION METER INSTALLED BY THE QUALIFYING RETAIL UTILITY OR
THIRD
-PARTY SYSTEM OWNER AND PAID FOR BY THE OWNER OF THE
COMMUNITY GEOTHERMAL GARDEN
.
(II) T
HE PURCHASE OF THE OUTPUT OF A COMMUNITY GEOTHERMAL
GARDEN BY A QUALIFYING RETAIL UTILITY TAKES THE FORM OF A NET
METERING CREDIT AGAINST THE QUALIFYING RETAIL UTILITY
'S ELECTRIC
BILL TO EACH COMMUNITY GEOTHERMAL GARDEN SUBSCRIBER AT THE
PREMISES SET FORTH IN THE SUBSCRIBER
'S SUBSCRIPTION. THE NET
METERING CREDIT IS CALCULATED BY MULTIPLYING THE SUBSCRIBER
'S
SHARE OF THE ELECTRICITY PRODUCTION FROM THE COMMUNITY
GEOTHERMAL GARDEN BY THE QUALIFYING RETAIL UTILITY
'S TOTAL
AGGREGATE RETAIL RATE AS CHARGED TO THE SUBSCRIBER
, MINUS A
REASONABLE CHARGE AS DETERMINED BY THE COMMISSION TO COVER THE
UTILITY
'S COSTS OF DELIVERING TO THE SUBSCRIBER 'S PREMISES THE
ELECTRICITY GENERATED BY THE COMMUNITY GEOTHERMAL GARDEN
,
INTEGRATING THE GEOTHERMAL GENERATION WITH THE UTILITY 'S SYSTEM,
AND ADMINISTERING THE COMMUNITY GEOTHERMAL GARDEN 'S CONTRACTS
AND NET METERING CREDITS
. THE COMMISSION SHALL ENSURE THAT THIS
CHARGE DOES NOT REFLECT COSTS THAT ARE ALREADY RECOVERED BY THE
UTILITY FROM THE SUBSCRIBER THROUGH OTHER CHARGES
. IF, AND TO THE
EXTENT THAT
, A SUBSCRIBER'S NET METERING CREDIT EXCEEDS THE
SUBSCRIBER
'S ELECTRIC BILL IN ANY BILLING PERIOD, THE NET METERING
CREDIT IS CARRIED FORWARD AND APPLIED AGAINST FUTURE BILLS
. THE
QUALIFYING RETAIL UTILITY AND THE OWNER OF THE COMMUNITY
GEOTHERMAL GARDEN MUST AGREE ON WHETHER THE PURCHASE OF THE
RENEWABLE ENERGY CREDITS FROM SUBSCRIBERS WILL BE ACCOMPLISHED
THROUGH A CREDIT ON EACH SUBSCRIBER
'S ELECTRICITY BILL OR BY A
PAYMENT TO THE OWNER OF THE COMMUNITY GEOTHERMAL GARDEN
.
PAGE 13-SENATE BILL 22-118 (c) THE OWNER OF THE COMMUNITY GEOTHERMAL GARDEN MUST
PROVIDE REAL
-TIME PRODUCTION DATA TO THE QUALIFYING RETAIL UTILITY
TO FACILITATE INCORPORATION OF THE COMMUNITY GEOTHERMAL GARDEN
INTO THE UTILITY
'S OPERATION OF ITS ELECTRIC SYSTEM AND TO FACILITATE
THE PROVISION OF NET METERING CREDITS
.
(d) T
HE OWNER OF THE COMMUNITY GEOTHERMAL GARDEN IS
RESPONSIBLE FOR PROVIDING TO THE QUALIFYING RETAIL UTILITY
, ON A
MONTHLY BASIS AND WITHIN REASONABLE PERIODS SET BY THE QUALIFYING
RETAIL UTILITY
, THE PERCENTAGE SHARES THAT SHOULD BE USED TO
DETERMINE THE NET METERING CREDIT TO EACH SUBSCRIBER
. IF THE
ELECTRICITY OUTPUT OF THE COMMUNITY GEOTHERMAL GARDEN IS NOT
FULLY SUBSCRIBED
, THE QUALIFYING RETAIL UTILITY SHALL PURCHASE THE
UNSUBSCRIBED RENEWABLE ENERGY AND THE RENEWABLE ENERGY CREDITS
AT A RATE EQUAL TO THE QUALIFYING RETAIL UTILITY
'S AVERAGE HOURLY
INCREMENTAL COST OF ELECTRICITY SUPPLY OVER THE IMMEDIATELY
PRECEDING CALENDAR YEAR
.
(e) I
F A QUALIFYING RETAIL UTILITY INCLUDES A PLAN TO PURCHASE
THE ELECTRICITY AND RENEWABLE ENERGY CREDITS GENERATED BY ONE OR
MORE COMMUNITY GEOTHERMAL GARDENS
, THEN THE QUALIFYING RETAIL
UTILITY SHALL SET FORTH IN ITS PLAN FOR ACQUISITION OF RENEWABLE
RESOURCES A PROPOSAL FOR INCLUDING LOW
-INCOME CUSTOMERS AS
SUBSCRIBERS TO A COMMUNITY GEOTHERMAL GARDEN
, IF POSSIBLE. THE
UTILITY MAY GIVE PREFERENCE TO COMMUNITY GEOTHERMAL GARDENS
THAT HAVE LOW
-INCOME SUBSCRIBERS.
(f) Q
UALIFYING RETAIL UTILITIES ARE ELIGIBLE FOR THE INCENTIVES
AND SUBJECT TO THE OWNERSHIP LIMITATIONS SET FORTH IN SECTION
40-2-124 (1)(f) FOR UTILITY INVESTMENTS IN COMMUNITY GEOTHERMAL
GARDENS AND MAY RECOVER THROUGH RATES A MARGIN
, IN AN AMOUNT
DETERMINED BY THE COMMISSION
, ON ALL ENERGY AND RENEWABLE
ENERGY CREDITS PURCHASED FROM COMMUNITY GEOTHERMAL GARDENS
.
S
UCH INCENTIVE PAYMENTS ARE EXCLUDED FROM THE COST ANALYSIS
REQUIRED BY SECTION
40-2-124 (1)(g).
(6) N
OTHING IN THIS SECTION WAIVES OR SUPERSEDES THE RETAIL
RATE IMPACT LIMITATIONS IN SECTION
40-2-124 (1)(g). UTILITY
EXPENDITURES FOR UNSUBSCRIBED ENERGY AND RENEWABLE ENERGY
CREDITS GENERATED BY COMMUNITY GEOTHERMAL GARDENS MUST BE
PAGE 14-SENATE BILL 22-118 INCLUDED IN THE CALCULATIONS OF RETAIL RATE IMPACT REQUIRED BY
THAT SECTION
.
(7) Applicability to cooperative electric associations and
municipally owned utilities. T
HIS SECTION SHALL NOT APPLY TO
COOPERATIVE ELECTRIC ASSOCIATIONS OR TO MUNICIPALLY OWNED
UTILITIES
.
SECTION 12. In Colorado Revised Statutes, 25-7-105, amend
(1)(e)(VIII)(H) as follows:
25-7-105. Duties of commission - rules - legislative declaration
- definitions. (1) Except as provided in sections 25-7-130 and 25-7-131,
the commission shall promulgate rules that are consistent with the
legislative declaration set forth in section 25-7-102 and necessary for the
proper implementation and administration of this article 7, including:
(e) (VIII) (H) In verifying clean energy plans or a wholesale
generation and transmission cooperative electric resource plan submitted in
accordance with subsection (1)(e)(VIII)(I) of this section, the division shall
prevent double counting of emission reductions among utilities and shall
consider electricity generated by renewable energy resources as having zero
greenhouse gas emissions only if: The electricity is accompanied by any
associated renewable energy credit, and the renewable energy credit is
retired on behalf of the utility's customers in the year generated; or the
electricity is generated by retail distributed generation, as defined in
sections 40-2-124 (1)(a)(VIII), and
40-2-127 (2)(b)(I)(A) and (2)(b)(I)(B),
AND 40-2-127.5 (2)(a)(I) AND (2)(a)(II), and the retail customer retains the
renewable energy credit as part of a voluntary renewable energy program.
SECTION 13. In Colorado Revised Statutes, 30-20-602, amend
(4.3)(b) as follows:
30-20-602. Definitions. As used in this part 6, unless the context
otherwise requires:
(4.3) "Qualified community location" means:
(b) If the affected local electric utility is an investor-owned utility,
a community solar garden, as that term is defined in section 40-2-127 (2),
PAGE 15-SENATE BILL 22-118 C.R.S. If House Bill 10-1342 does not take effect, there shall be no
qualified community locations in the service territories of investor-owned
utilities. OR A COMMUNITY GEOTHERMAL GARDEN AS THAT TERM IS DEFINED
IN SECTION
42-2-127.5 (2).
SECTION 14. In Colorado Revised Statutes, 31-25-501, amend
(3.5)(b) as follows:
31-25-501. Definitions. As used in this part 5, unless the context
otherwise requires:
(3.5) "Qualified community location" means:
(b) If the affected local electric utility is an investor-owned utility,
a community solar garden as that term is defined in section 40-2-127 (2),
C.R.S. If House Bill 10-1342 does not take effect, there shall be no
qualified community locations in the service territories of investor-owned
utilities. OR A COMMUNITY GEOTHERMAL GARDEN AS THAT TERM IS DEFINED
IN SECTION
42-2-127.5 (2).
SECTION 15. In Colorado Revised Statutes, 40-2-129, amend (3)
as follows:
40-2-129. New resource acquisitions - factors in determination
- local employment - "best value" metrics - performance audit. (3) The
provisions of this section regarding "best value" employment metrics do not
apply to projects involving retail distributed generation, as defined in
section 40-2-124 (1)(a)(VIII), or
40-2-127 (2)(b)(I)(B), OR 40-2-127.5
(2)(a)(II).
SECTION 16. In Colorado Revised Statutes, 40-9.5-106, amend
(2) as follows:
40-9.5-106. Prohibited acts. (2) No cooperative electric
association, as to rates, charges, service, or facilities or as to any other
matter, shall make or grant any preference or advantage to any corporation
or person or subject any corporation or person to any prejudice or
disadvantage. No cooperative electric association shall establish or maintain
any unreasonable difference as to rates, charges, service, or facilities or as
to any other matter, either between localities or between any class of
PAGE 16-SENATE BILL 22-118 service. Notwithstanding section 40-6-108 (1)(b), any complaint arising out
of this subsection (2) signed by one or more customers of such association
shall be resolved by the public utilities commission in accordance with the
hearing and enforcement procedures established in articles 6 and 7 of this
title. A cooperative electric association may approve any reasonable rate,
charge, service, classification, or facility that establishes a graduated rate for
increased energy consumption, for energy conservation and energy
efficiency purposes, by residential customers that is revenue-neutral for the
class, where revenue includes margins, expenses, riders, or charges as
approved by the cooperative electric association. The implementation of
such rate, charge, service, classification, or facility by a cooperative electric
association shall not be deemed to subject any person or corporation to any
prejudice, disadvantage, or undue discrimination. In adopting such rate, a
cooperative electric association shall give due consideration to the impact
of such rates on low-income customers. A cooperative electric association
may utilize a community energy fund as contemplated by section 40-2-127
SECTIONS 40-2-127 AND 40-2-127.5 for energy efficiency, energy
conservation, weatherization, and renewable energy purposes. A
cooperative electric association shall not apply such rate to consumers that
have single meters that record energy consumption for combined residential
and agricultural uses.
SECTION 17. Appropriation. For the 2022-23 state fiscal year,
$15,000 is appropriated to the office of the governor for use by the
Colorado energy office. This appropriation is from the general fund. To
implement this act, the office may use this appropriation for program
administration.
SECTION 18. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 17-SENATE BILL 22-118 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Steve Fenberg Alec Garnett
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 18-SENATE BILL 22-118